Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Design of Mixed Integer Linear Programming Model for Strategic Location Decision -Focused on the Automotive Industry SCM-

혼합정수 계획법을 이용한 전략적 입지선정 -자동차 SCM을 중심으로-

  • Young-Kyou HA (Department of International Trade and Logistics, Chung–ang University) ;
  • Su-Han Woo (Department of International Logistics, Chung-ang University)
  • 하영규 (중앙대학교 무역물류학과) ;
  • 우수한 (중앙대학교 국제물류학과)
  • Received : 2021.04.08
  • Accepted : 2021.04.27
  • Published : 2021.04.30
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Abstract

In recent year, US government requires local investment ,unlike in the past, when import restrictions and tariff were imposed. In this situation, many companies are considering new investment in the US and entering the local market. However, research on the optimal investment plan along with the case analysis on trade regulation is extremely limited and more research needs to be conducted. Accordingly, this study aims to suggest the implications and countermeasure of the SCM and logistical perspective by studying the optimal measures for the new investment of each company due to trade regulation. As a research method, the gravity location model, Mixed Integer Linear Programming Model were used to select the optimal automobile manufacturing factory considering each state's population. This study will be implication of SCM and logistics perspective not only for companies considering new investment in the US but also for the government to conduct trade negotiations. In the future, it is expected that the US trade pressure will increase and affect Korea in many ways. Therefore, in order to cope with such difficult situation in a timely manner, continuous research considering various possibilities is needed in the future.

Keywords

Acknowledgement

This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries.

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